If I understand your question correctly, you're trying to use subversion as an intermediary between your local development environment and your production environment. You wish to develop your website in a separate location, commit your changes, and then have those changes propagate to your production website. If that's not correct, please reply.
Something like this is certainly do-able. To get the terminology correct, in subversion you have a "repository" that lives on your subversion server. You never ever touch the repository itself, except indirectly by performing operations using an svn client. You can "check out" multiple "working copies" of the repository (or a sub-set thereof) to access your source files themselves. To achieve what you're asking, you would create a working copy on your development machine and make your changes there. When satisfied, you "commit" them to your repository. On your production location, you would have to create another working copy of the same repository location. You need to explicitly run "svn update" in this working copy to have the latest changes applied to it. Changes do not automatically propagate to all working copies on a commit.
If you haven't yet, you should take the time to read through the subversion book. It is an extremely valuable resource for subversion and the principles of source control in general.